INTRODUCTION TO SIX

SIGMA APPLICATIONS
Learning Objectives

• Have a broad understanding of statistical concepts and tools.

• Understand how statistical concepts can be used to improve business

processes.

• Understand the relationship between the curriculum and the four step
six sigma problem solving process (Measure, Analyze, Improve and
Control).
What is Six Sigma?
A Philosophy
• Customer Critical To Quality (CTQ) Criteria
• Breakthrough Improvements
• Fact-driven, Measurement-based, Statistically Analyzed Prioritization
• Controlling the Input & Process Variations Yields a Predictable Product

A Quality Level
• 6s = 3.4 Defects per Million Opportunities
A Structured Problem-Solving Approach
• Phased Project: Measure, Analyze, Improve, Control

A Program
• Dedicated, Trained BlackBelts
• Prioritized Projects
• Teams - Process Participants & Owners
POSITIONING SIX SIGMA
THE FRUIT OF SIX SIGMA

Sweet Fruit
Design for Manufacturability

Process Entitlement
Bulk of Fruit
Process Characterization
and Optimization

Low Hanging Fruit

Seven Basic Tools

Ground Fruit
Logic and Intuition
UNLOCKING THE HIDDEN FACTORY

VALUE
STREAM TO WASTE DUE TO
THE INCAPABLE
CUSTOMER PROCESSES

PROCESSES WHICH PROVIDE WASTE SCATTERED THROUGHOUT

PRODUCT VALUE IN THE THE VALUE STREAM
CUSTOMER’S EYES
• EXCESS INVENTORY
•FEATURES OR • REWORK
CHARACTERISTICS THE • WAIT TIME
CUSTOMER WOULD PAY • EXCESS HANDLING
FOR…. • EXCESS TRAVEL DISTANCES
• TEST AND INSPECTION

Waste
Waste isis aa significant
significant cost
cost driver
driver and
and has
has aa major
major impact
impact
on
on the
the bottom
bottom line...
line...
Common Six Sigma Project Areas

• Manufacturing Defect Reduction

• Cycle Time Reduction
• Cost Reduction
• Inventory Reduction
• Product Development and Introduction
• Labor Reduction
• Increased Utilization of Resources
• Product Sales Improvement
• Capacity Improvements
• Delivery Improvements
The Focus of Six Sigma…..

All critical characteristics (Y) are

driven by factors (x) which are
“upstream” from the results….
Attempting to manage results (Y)
only causes increased costs due
to rework, test and inspection…
Y = f(x) Understanding and controlling the
causative factors (x) is the real key
to high quality at low cost...
 INSPECTION EXERCISE

The necessity of training farm hands for first class farms in

the fatherly handling of farm livestock is foremost in the
minds of farm owners. Since the forefathers of the farm
owners trained the farm hands for first class farms in the
fatherly handling of farm livestock, the farm owners feel
they should carry on with the family tradition of training
farm hands of first class farms in the fatherly handling of
farm livestock because they believe it is the basis of good
fundamental farm management.

How many f’s can you identify in 1 minute of inspection….

INSPECTION EXERCISE

The necessity of* training f*arm hands f*or f*irst class

f*arms in the f*atherly handling of* f*arm livestock is
f*oremost in the minds of* f*arm owners. Since the
f*oref*athers of* the f*arm owners trained the f*arm hands
f*or f*irst class f*arms in the f*atherly handling of* f*arm
livestock, the f*arm owners f*eel they should carry on with
the f*amily tradition of* training f*arm hands of* f*irst class
f*arms in the f*atherly handling of* f*arm livestock
because they believe it is the basis of* good f*undamental
f*arm management.

How many f’s can you identify in 1 minute of inspection….36 total are available.
SIX SIGMA COMPARISON

Six
Six Sigma
Sigma Traditional
Traditional
Focus on Prevention Focus on Firefighting
Low cost/high throughput High cost/low throughput
Poka Yoke Control Strategies Reliance on Test and Inspection
Stable/Predictable Processes Processes based on Random Probability
Proactive Reactive
Low Failure Rates High Failure Rates
Focus on Long Term Focus on Short Term
Efficient Wasteful
Manage by Metrics and Analysis Manage by “Seat of the pants”

“SIX SIGMA TAKES US FROM FIXING PRODUCTS SO THEY ARE EXCELLENT, TO

FIXING PROCESSES SO THEY PRODUCE EXCELLENT PRODUCTS”
Dr. George Sarney, President, Siebe Control Systems
 IMPROVEMENT ROADMAP

Objective
Phase 1: •Define the problem and
Measurement verify the primary and
secondary measurement
Characterization
systems.
Phase 2:
•Identify the few factors
Analysis
which are directly
Breakthrough
influencing the problem.
Strategy

Phase 3: •Determine values for the

Improvement few contributing factors
Optimization
which resolve the problem.
•Determine long term
Phase 4:
Control
control measures which will
ensure that the contributing
factors remain controlled.
Measurements are critical...

•If we can’t accurately measure something,

we really don’t know much about it.
•If we don’t know much about it, we can’t
control it.
•If we can’t control it, we are at the mercy
of chance.
 WHY STATISTICS?
THE ROLE OF STATISTICS IN SIX SIGMA.

• WE DON’T KNOW WHAT WE DON’T KNOW

• IF WE DON’T HAVE DATA, WE DON’T KNOW
• IF WE DON’T KNOW, WE CAN NOT ACT
• IF WE CAN NOT ACT, THE RISK IS HIGH
• IF WE DO KNOW AND ACT, THE RISK IS MANAGED
• IF WE DO KNOW AND DO NOT ACT, WE DESERVE THE LOSS.
DR. Mikel J. Harry

• TO GET DATA WE MUST MEASURE

• DATA MUST BE CONVERTED TO INFORMATION
• INFORMATION IS DERIVED FROM DATA THROUGH STATISTICS
 WHY STATISTICS?
THE ROLE OF STATISTICS IN SIX SIGMA..

• Ignorance is not bliss, it is the food of failure and the

breeding ground for loss.

• Years ago a statistician might have claimed that statistics dealt

with the processing of data….
• Today’s statistician will be more likely to say that statistics is
concerned with decision making in the face of uncertainty.
WHAT DOES IT MEAN?

 Sales Receipts
 On Time Delivery
 Process Capacity
 Order Fulfillment Time
 Reduction of Waste
 Product Development Time
 Process Yields
 Scrap Reduction
 Inventory Reduction
 Floor Space Utilization
Learning Objectives

• Have a broad understanding of statistical concepts and tools.

• Understand how statistical concepts can be used to improve business

processes.

• Understand the relationship between the curriculum and the four step
six sigma problem solving process (Measure, Analyze, Improve and
Control).